Exploring Other Revenue-Generating Strategies From Your Rental Properties
For real estate investors, raising rents often leads to pushback from tenants. Rent increases can also result in tenants not renewing their leases, which isn’t ideal for business. Balancing rental income and long-term tenant retention is a challenge many investors face. Fortunately, there are alternative ways to boost your rental income without increasing rent. Here are some strategies to help you maximize profits while keeping your tenants happy.
Rental Income Strategies
We have curated the following strategies you can implement to help you increase income from your rentals. Some of these concepts are passive, thus requiring no substantial extra effort from you.
1. Convert Unused Spaces into Income Generators
If you have extra storage spaces, like an unused room, a sizable attic, or additional parking, rent those out to tenants who are in need of more space. Unused parking areas can also be rented within your property. One way to ensure tenants’ parking is by adding barriers between rented and tenant-designated spots. Bike storage can also be offered to tenants who prefer not to park their bicycles inside their homes.
2. Host Meetings and Small Events
Multi-family properties often have unused spaces that can be rented out for small events like office meetings with limited guests or even small promotional events. These events are usually short and allow you to earn additional income with minimal disruption.
3. Property Upgrades
Property improvements, upgrades, and preventive repairs may also offer more revenue. However, their effects on your income can only be realized over time. Regular maintenance reduces the need for costly emergency repairs. Refurbishing and upgrading can lead to higher rents, lower vacancies, and a broader pool of potential tenants. Reducing your rental vacant times ensures more continuous income streams.
4. Switch to Energy-Efficient Lights And Electronic Locks
Using energy-efficient light bulbs in common areas of multi-family rentals reduces electric bills. LED bulbs and lighting fixtures offer more light at the same wattage rating. For example, a 5-watt LED Bulb can light the same area with the same intensity as a 50-watt incandescent bulb, reducing costs by 90%. Replacing old locks with electronic ones also lessens long-term costs since you can reprogram the locks for new tenants instead of replacing them.
5. Partner with Local Businesses
Another way of increasing your income is to partner with local businesses around the area to offer discounts for your tenants. The partnership will build and encourage rapport between your tenants and the business community near your rentals. With this program, you can help businesses in your locality build loyal customers while you are earning commissions from their purchases.
The tie-up with local shops or firms is not limited to tenants from multi-family buildings but also your tenants from your detached rentals. This program helps ensure that local shops and businesses in your local area remain open, thus encouraging a vibrant community and ensuring long-term occupancy for your property rentals. You can also partner with cleaning services for your tenants who prefer to have their places maintained by companies that provide professional cleaning services.
6. Offer Vending Machines And Other Amenities In Your Multi-Unit Rental
Multi-family rentals are ideal for installing vending machines for drinks, snacks, and other essential items. You can operate the machines yourself or partner with a vending machine operator who will manage the machine for you. Remember to include in the contract how you plan to share the income with them. To avoid a high supply and little demand, consider the general demographics of your tenants so you know what to sell.
In-house laundry service with coin-operated machines is another income stream that can be taken advantage of. Laundry pick-up and delivery services can also be provided by partnering with local laundromats.
Ask your telecoms companies for premium telecoms, internet, and cable packages for entire buildings. These packages can then be offered to tenants for additional fees.
7. Allow Pet Owners for An Additional Fee
Additional fees on top of rental fees can be charged if you allow pets in your rentals. Americans who own pets span across three generations, with some looking for their first homes. With 66% of U.S. households owning pets in 2024, this can attract a larger and younger tenant market. Pet-friendly rentals open up opportunities for long-term leases and additional income.
Our Final Take
Raising rents is the usual strategy landlords use to stop climbing costs and expenses but can drive tenants away. Alternative strategies to increase your income without raising rent will promote long-term rental contracts, reduce vacancies, and gain long-term savings that turn into income. The seven ways described in this article will allow you to enjoy the extra income while keeping your tenants happy and sign for longer leases, leaving you with reduced stress, minimized vacancies, and more income.
With all the creative ways of increasing your income, are you now ready to invest in real estate rentals? Ask us how. Call now at 832-770-9415 and shoot us an email at info@gllholdings.com.
